Crude oil has been in a strong uptrend since late last year and is now giving us an opportunity to get involved on the long side once again after our initial price target near 4,425 Indian rupees was exceeded in mid-April.
Over the past two weeks, prices have experienced a swift 13% decline that has brought them back to a confluence of support near 4,425 rupees. Given that prices are still above a rising 200-day moving average and momentum remains in a bullish range, we want to be buying this pullback. Our risk is very well-defined at last week's lows of 4,305 rupees, and our next upside objective is 20% from current levels at 5,335 rupees. We know when we're wrong, and the market is likely to let us know very quickly if we are, but for now, the primary trend continues to favor the bulls.
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